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The Impact of Unconditional Cash Transfers on Nutrition: The South African Child Support Grant

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  • Jorge M. Aguero
  • Michael R. Carter
  • Ingrid Woolard

    ()
    (SALDRU, School of Economics, University of Cape Town)

Abstract

Cash transfer programs are used as new policies to increase nutrition and human capital of children from poor families. We evaluate South Africa's unconditional Child Support Grant (CSG) in which cash grants are made to families with no strings attached. However, in contrast to the market-generated income increases that identified low nutritional elasticities in earlier studies, the income increases generated by the South African cash transfers are almost exclusively assigned to women. Taking advantage of a slow program roll-out that created exogenous variation in the extent of CSGtreatment received by beneficiaries, we utilizes recent methods on continuous treatment to estimate the impact of these transfers on child nutrition. Large dosages of CSG treatment early in life are shown to significantly boost child's nutrition. Additionally, our calculations suggest that discounted rate of return on CSG payments is between a 160% and 230%.

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Bibliographic Info

Paper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU Working Papers with number 8.

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Length: 37 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:ldr:wpaper:8

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Keywords: Nutrition; cash transfers; continuous treatment estimator; South Africa.;

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  1. Lawrence Haddad & Harold Alderman & Simon Appleton & Lina Song & Yisehac Yohannes, 2003. "Reducing Child Malnutrition: How Far Does Income Growth Take Us?," World Bank Economic Review, World Bank Group, vol. 17(1), pages 107-131, June.
  2. Stephan Klasen, 1997. "Poverty, Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey," Social Indicators Research, Springer, vol. 41(1), pages 51-94, July.
  3. World Bank, 2006. "Repositioning Nutrition as Central to Development : A Strategy for Large Scale Action," World Bank Publications, The World Bank, number 7409.
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  13. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
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  16. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank.
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